J2CA0046E:Resource Allocation Exception:

We have developed an application for our client, which is running on WAS 5.1. It runs fine for some time with several users. We are using SQL Server database 2000 and connecting using MS SQL Driver (non-XA) with database pool manager connection(Max/Min 10/1). After some time, though it is showing "Total number of connections = 1" (that means server can create 9 more connections still), it is throwing J2CA0046E:Resource Allocation Exception. Some of the Trace(J2C) log is as follows. Any help will be greatly appreciated.
Connection Request Information = com.ibm.ws.rsadapter.spi.WSConnectionRequestInfoImpl@4
UserName = null
Password = null
Catalog = null
IsReadOnly = null
TypeMap = null
Isolation = REPEATABLE READ
Support isolation switching = false
Handle type = java.sql.Connection
[6/15/06 14:59:42:820 EDT] 24fa970e PoolManager d reserve(), Pool contents ==> PoolManager name:jdbc/qualitystage
PoolManager object:1308923669
Total number of connections: 1 (max/min 10/1)
Pool Bucket configuration
Shared Buckets: 200
UnShared Buckets: 10
Shared Connection information
(133) com.ibm.ws.LocalTransaction.LocalTranCoordImpl@547c5735 MCWrapper id 4fc8d723 Managed connection com.ibm.ws.rsadapter.spi.WSRdbManagedConnectionImpl@48f45723 State:STATE_TRAN_WRAPPER_INUSE
Total number of connection in shared pool: 1
Free Connection information
No free connections
UnShared Connection information
No unshared connections
[6/15/06 14:59:42:820 EDT] 24fa970e SharedPool > getSharedConnection
[6/15/06 14:59:42:820 EDT] 24fa970e SharedPool d allocateConnection_Common: HandleCount = 1
[6/15/06 14:59:42:820 EDT] 24fa970e SharedPool I J2CA0086W: Shareable connection MCWrapper id 4fc8d723 Managed connection com.ibm.ws.rsadapter.spi.WSRdbManagedConnectionImpl@48f45723 State:STATE_TRAN_WRAPPER_INUSE
from resource jdbc/qualitystage was used within a local transaction containment boundary.
[6/15/06 14:59:42:820 EDT] 24fa970e SharedPool < getSharedConnection, returning mcWrapper
<null>
[6/15/06 14:59:42:820 EDT] 24fa970e PoolManager > computeHashCode
[6/15/06 14:59:42:820 EDT] 24fa970e PoolManager < computeHashCode, hashCode is 2
[6/15/06 14:59:42:820 EDT] 24fa970e FreePool > createOrWaitForConnection
[6/15/06 14:59:42:820 EDT] 24fa970e FreePool d TotalConnectionCount is 2
[6/15/06 14:59:42:820 EDT] 24fa970e FreePool > createManagedConnectionWithMCWrapper
[6/15/06 14:59:43:242 EDT] 24fa970e FreePool E J2CA0046E: Method createManagedConnctionWithMCWrapper caught an exception during creation of the ManagedConnection for resource jdbc/qualitystage, throwing ResourceAllocationException. Original exception: com.ibm.ws.exception.WsException: DSRA8100E: Unable to get a PooledConnection from the DataSource.
at com.ibm.ws.rsadapter.exceptions.DataStoreAdapterException.<init>(DataStoreAdapterException.java:244)
at com.ibm.ws.rsadapter.exceptions.DataStoreAdapterException.<init>(DataStoreAdapterException.java:171)
at com.ibm.ws.rsadapter.AdapterUtil.createDataStoreAdapterException(AdapterUtil.java:208)
at com.ibm.ws.rsadapter.DSConfigurationHelper.getPooledConnection(DSConfigurationHelper.java:706)
at com.ibm.ws.rsadapter.spi.WSRdbDataSource.getPooledConnection(WSRdbDataSource.java:487)
at com.ibm.ws.rsadapter.spi.WSManagedConnectionFactoryImpl.createManagedConnection(WSManagedConnectionFactoryImpl.java:577)
at com.ibm.ejs.j2c.poolmanager.FreePool.createManagedConnectionWithMCWrapper(FreePool.java:1280)
at com.ibm.ejs.j2c.poolmanager.FreePool.createOrWaitForConnection(FreePool.java:1064)
at com.ibm.ejs.j2c.poolmanager.PoolManager.reserve(PoolManager.java:1571)
at com.ibm.ejs.j2c.ConnectionManager.allocateMCWrapper(ConnectionManager.java:622)
at com.ibm.ejs.j2c.ConnectionManager.allocateConnection(ConnectionManager.java:424)
at com.ibm.ws.rsadapter.jdbc.WSJdbcDataSource.getConnection(WSJdbcDataSource.java:216)
at com.ibm.ws.rsadapter.jdbc.WSJdbcDataSource.getConnection(WSJdbcDataSource.java:191)
at com.itt.util.SqlConnectionDAO.getConnection(SqlConnectionDAO.java:43)
at com.itt.util.DropDownDAO.<init>(DropDownDAO.java:33)
at com.itt.action.InquirybyGeneralDataAction.inquirybyGeneralDataView(InquirybyGeneralDataAction.java:54)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java(Compiled Code))
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java(Compiled Code))
at java.lang.reflect.Method.invoke(Method.java(Compiled Code))
at org.apache.struts.actions.DispatchAction.dispatchMethod(DispatchAction.java:274)
at org.apache.struts.actions.DispatchAction.execute(DispatchAction.java:194)
at org.apache.struts.actions.MappingDispatchAction.execute(MappingDispatchAction.java:169)
at org.apache.struts.action.RequestProcessor.processActionPerform(RequestProcessor.java:419)
at org.apache.struts.action.RequestProcessor.process(RequestProcessor.java:224)
at org.apache.struts.action.ActionServlet.process(ActionServlet.java:1194)
at org.apache.struts.action.ActionServlet.doGet(ActionServlet.java:414)
at javax.servlet.http.HttpServlet.service(HttpServlet.java:740)
at javax.servlet.http.HttpServlet.service(HttpServlet.java(Compiled Code))
at com.ibm.ws.webcontainer.servlet.StrictServletInstance.doService(StrictServletInstance.java:110)
at com.ibm.ws.webcontainer.servlet.StrictLifecycleServlet._service(StrictLifecycleServlet.java:174)
at com.ibm.ws.webcontainer.servlet.IdleServletState.service(StrictLifecycleServlet.java:313)
at com.ibm.ws.webcontainer.servlet.StrictLifecycleServlet.service(StrictLifecycleServlet.java:116)
at com.ibm.ws.webcontainer.servlet.ServletInstance.service(ServletInstance.java:283)
at com.ibm.ws.webcontainer.servlet.ValidServletReferenceState.dispatch(ValidServletReferenceState.java:42)
at com.ibm.ws.webcontainer.servlet.ServletInstanceReference.dispatch(ServletInstanceReference.java:40)
at com.ibm.ws.webcontainer.webapp.WebAppRequestDispatcher.handleWebAppDispatch(WebAppRequestDispatcher.java:974)
at com.ibm.ws.webcontainer.webapp.WebAppRequestDispatcher.dispatch(WebAppRequestDispatcher.java:555)
at com.ibm.ws.webcontainer.webapp.WebAppRequestDispatcher.forward(WebAppRequestDispatcher.java:200)
at com.ibm.ws.webcontainer.srt.WebAppInvoker.doForward(WebAppInvoker.java:119)
at com.ibm.ws.webcontainer.srt.WebAppInvoker.handleInvocationHook(WebAppInvoker.java:276)
at com.ibm.ws.webcontainer.cache.invocation.CachedInvocation.handleInvocation(CachedInvocation.java:71)
at com.ibm.ws.webcontainer.srp.ServletRequestProcessor.dispatchByURI(ServletRequestProcessor.java:182)
at com.ibm.ws.webcontainer.oselistener.OSEListenerDispatcher.service(OSEListener.java:334)
at com.ibm.ws.webcontainer.http.HttpConnection.handleRequest(HttpConnection.java:56)
at com.ibm.ws.http.HttpConnection.readAndHandleRequest(HttpConnection.java:618)
at com.ibm.ws.http.HttpConnection.run(HttpConnection.java:443)
at com.ibm.ws.util.ThreadPool$Worker.run(ThreadPool.java:593)
Caused by: java.sql.SQLException: [Microsoft][SQLServer 2000 Driver for JDBC]Error opening/loading com.microsoft.util.transliteration.properties.
at com.microsoft.jdbc.base.BaseExceptions.createException(Unknown Source)
at com.microsoft.jdbc.base.BaseExceptions.getException(Unknown Source)
at com.microsoft.jdbc.sqlserver.tds.TDSConnection.setNonUnicodeTransliterator(Unknown Source)
at com.microsoft.jdbc.sqlserver.tds.TDSConnection.setSQLCollation(Unknown Source)
at com.microsoft.jdbc.sqlserver.tds.TDSRequest.processEnvChange(Unknown Source)
at com.microsoft.jdbc.sqlserver.tds.TDSRequest.processReplyToken(Unknown Source)
at com.microsoft.jdbc.sqlserver.tds.TDSLoginRequest.processReplyToken(Unknown Source)
at com.microsoft.jdbc.sqlserver.tds.TDSRequest.processReply(Unknown Source)
at com.microsoft.jdbc.sqlserver.SQLServerImplConnection.open(Unknown Source)
at com.microsoft.jdbc.base.BaseConnection.getNewImplConnection(Unknown Source)
at com.microsoft.jdbc.base.BaseConnection.open(Unknown Source)
at com.microsoft.jdbcx.base.BaseDataSource.getBaseConnection(Unknown Source)
at com.microsoft.jdbcx.base.BaseDataSource.getPooledConnection(Unknown Source)
at com.ibm.ws.rsadapter.DSConfigurationHelper$1.run(DSConfigurationHelper.java:688)
at com.ibm.ws.security.util.AccessController.doPrivileged(AccessController.java(Compiled Code))
at com.ibm.ws.rsadapter.DSConfigurationHelper.getPooledConnection(DSConfigurationHelper.java:683)
... 44 more

I believe the underlying error is this...
Caused by: java.sql.SQLException: [Microsoft][SQLServer 2000 Driver for JDBC]Error opening/loading com.microsoft.util.transliteration.properties.
Now how you are getting one connection and then failing to get more I have no idea but it certainly looks as if this is the error. Following your stacktrace we can see that the a connection is requested from the pool and then the pool attempts to create a connection... seems to actually create it successfully but then blows up doing something with unicode or something.
My suggestion.
Make sure you have an updated driver from Microsoft OR try the jTDS driver instead. This looks like a driver bug to me. Even if you can't use the jTDS one in production I would try it and see if the problem goes away.. that would at least elminate the connection pool or something else being wrong as the cause.
Once you have it isolated you can move on as needed.

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